Full Year Trading Update
Strong revenue growth continues with profit ahead of expectations
Alliance Pharma plc (AIM: APH), the international healthcare group, announces its unaudited trading update for the year ended 31 December 2021 (“the Year”), ahead of the expected announcement of the Group’s audited results on 22 March 2022.
The Group delivered strong growth in the Year with see-through revenue1 of £169.6m (2020: £137.5m), up 23% on the prior year (up 27% on a constant currency basis). Excluding the impact of Amberen™, which was acquired in December 2020, like-for-like see-through revenues grew 12% on a constant currency basis. Due to an outperformance in Kelo-Cote™, underlying profit before tax for the Year is expected to be comfortably ahead of market expectations.
The Consumer Healthcare business continued to perform well, underpinned by increased eCommerce activity, driving total net revenues for the Year of £121.8m (2020: £93.0m), an increase of 31% on the prior year (36% adjusted for currency). Like-for-like2 consumer revenues rose 14% on a constant currency basis. Kelo-Cote delivered another excellent performance, particularly in the APAC region, with net revenues of £48.8m (2020: £34.7m), up 47% adjusted for currency and up 41% on a reported basis.
In the US, Amberen generated net revenues of $26.5m (£19.2m) in its first full year under Group ownership, with H2 2021 revenues up 12% on H2 2020 (under previous ownership) at constant currency. Full year revenues grew 3% on a constant currency basis, with growth expected to accelerate in 2022. Following a period of investment to expand its local operating capabilities, the US business now has an enhanced platform from which to generate strong growth in Amberen and other existing brands, and to scale up further when suitable acquisitions are identified.
Nizoral™ revenues started to recover in H2 2021 generating sales of £11.8m in H2 (£9.0m in H1 2021 and £11.2m in H2 2020), as the challenging regional trading conditions affecting both supply and demand eased. Consequently, net revenues of £20.6m (2020: £21.0m) for the Year rose 1% on a constant currency basis (-2% on a reported basis). We expect further improvement in 2022, as the pandemic recedes, and as Alliance takes full control of the supply chain following the end of the transition period with J&J.
The Prescription Medicines business delivered robust revenues of £47.8m (2020: £44.5m), up 8% on the prior year, which reflects a partial return to the delivery of routine treatments and normalisation of daily life compared with the early stages of the pandemic in 2020.
Free cash flow remained strong at £30.1m (2020: £34.1m) and, as a result, net debt fell £22.3m to £87.1m at 31 December 2021 (31 December 2020: £109.4m), reducing Group leverage3 below 2.0x (31 December 2020: 2.4x) in-line with previous guidance. In the absence of further acquisitions, Group leverage is expected to fall below 1.5x in 2022, reflecting the Group’s continuing strong cash generation.
Peter Butterfield, Chief Executive Officer of Alliance, commented:
“I’m delighted with the organic double-digit revenue growth delivered by the Group in 2021, despite the challenging operating environment. Our Consumer Healthcare business continued to perform well, with Kelo-Cote enjoying another excellent year of growth as we capitalised on the opportunities identified for the brand.
“As we move into 2022, with Amberen now fully integrated into our enlarged US operations, we expect to accelerate growth as we realise the benefits of the additional revenue opportunities that the brand has brought into the Group.”Peter Butterfield, Chief Executive Officer of Alliance
“Our free cash flow has remained robust, enabling us to continue to reduce both our net debt and our leverage in 2021. This places the Group in a strong position to participate in complementary acquisitions focused on the consumer healthcare space.”
See-through revenue includes sales from Nizoral™ as if they had been invoiced by Alliance. For statutory accounting purposes the product margin on revenue is included within Revenue, in line with IFRS 15. Revenue for 2021 on a statutory reported basis is expected to be £163.2m, an increase of 26% on the prior year.
Like-for-like revenues exclude Amberen in 2021 (£19.2m)
Adjusted net debt / enlarged Group EBITDA, calculated using pro forma EBITDA on a trailing 12-month basis
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (withdrawal) act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under article 17 of MAR.
For further information:
Alliance Pharma plc
Head of Investor Relations: Cora McCallum
+ 44 (0)1249 466966
+ 44 (0)1249 705168
Mark Court / Sophie Wills / Hannah Ratcliff
+ 44 (0)20 7466 5000
Numis Securities Limited
Nominated Adviser: Freddie Barnfield / Duncan Monteith
Corporate Broking: James Black
+ 44 (0)20 7260 1000
Investec Bank plc
Corporate Finance: Daniel Adams
Corporate Broking: Patrick Robb
+ 44 (0) 20 7597 5970
Alliance Pharma plc (AIM: APH) is an international healthcare group. Our purpose is to improve the lives of consumers and patients through making available a range of clinically valuable healthcare products.
Our core focus is on the marketing of Consumer Healthcare brands, complemented by a smaller Prescription Medicines business. In total, we hold marketing rights to around 80 brands, with revenues generated from a mix of direct, distributor and e-commerce sales.
Headquartered in the UK, the Group employs around 250 people based in locations across Europe, North America, and the Asia Pacific region. By outsourcing our manufacturing and logistics operations, we remain asset-light and focused on maximising the value of our brands.
For more information on Alliance, please visit our website: www.alliancepharmaceuticals.com